Do Consumers Pay More Using Debit Cards than Cash? An Experiment

We conduct an incentivized experiment to test whether the willingness to pay is higher for debit cards compared to cash for three consumer products. Our findings support this conjecture also after controlling for cash availability, spending type, price familiarity and consumption habits of the products. The evidence thus suggests that different representations of money matters for consumer behavior.

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Year of publication:	2014-05-21
Authors:	Runnemark, Emma ; Hedman, Jonas ; Xiao, Xiao
Institutions:	Nationalekonomiska Institutionen, Ekonomihögskolan
Subject:	payment methods \| debit cards \| cash \| willingness-to-pay

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Working Papers Number 2014:21 10 pages
Classification:	D03 - Behavioral Economics; Underlying Principles ; D10 - Household Behavior and Family Economics. General ; E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010818644